Actagro products are produced at two U.S. manufacturing facilities located in California and Arkansas. They’re distributed across global agricultural markets through numerous retailers and distributors, including Nutrien’s retail business.

The acquisition includes Actagro’s research and development team, as well as a near-complete research and development facility in Biola, California, that will support the continued development of soil and plant health technologies. Actagro’s headquarters are located in Fresno, California.

“Actagro has a strong track record of developing and manufacturing high-value crop nutrition products and we see a significant opportunity to expand the business by leveraging the global reach of our retail network and the expansion of Actagro’s strong relationships with domestic and international distributors,” said Chuck Magro, Nutrien President and CEO. “Nutrien will continue to use its strong balance sheet and cash flow to prudently allocate capital towards growth opportunities that create value for our customers and our shareholders.”

The purchase price is $340 million, including approximately $20 million in working capital, and is expected to be accretive to earnings in the first year. Nutrien anticipates the business to generate approximately $55 million in run-rate EBITDA two years after close with the realization of synergies and organic growth opportunities.

The closing of the transaction is subject to U.S. regulatory approval and is expected to be completed in the first half of 2019.